VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 20, 2013) - Blackbird Energy Inc. (TSX VENTURE:BBI) ("Blackbird" or the "Company") is pleased to announce that its wholly-owned subsidiary, Ruger Energy Inc. ("Ruger"), has entered into an agreement to purchase certain oil and gas assets from Home Quarter Resources Ltd. (the "Vendor") for total cash consideration of $115,000 (the "Acquisition").
The assets are comprised of 25 sections of Petroleum & Natural Gas Rights (the "Marengo - Mantario Project") located near Ruger's two current oil production facilities in Alsask and the Flaxcombe area of Saskatchewan. The Marengo - Mantario Project is comprised of a total of 16,000 net acres in West Central Saskatchewan. The Acquisition will provide Blackbird with a 100% working interest in 25 sections, at an average cost of $4,600 per section, subject to a 6% GORR in favour of the Vendor and standard crown royalties.
Garth Braun, President and CEO of Blackbird stated, "This acquisition of the Marengo - Mantario Project is a key addition to Blackbird's land position in one of our core areas and very synergistic to the Blackbird team strategy of extending the development of the multi-horizon oil plays from top to basement in both Alsask and Flaxcombe."
Mr. Braun went on to state, "The Blackbird team continues to be focused on originating new high quality oil plays through the assembly of additional land positions in Alberta and Saskatchewan. Blackbird is in the enviable position of having a healthy balance sheet to pursue these opportunities as they arise."
The Flaxcombe Project is comprised of a total of 5,041 acres (net 2,393 acres) in West Central Saskatchewan. Blackbird, through its only owned subsidiary Ruger Energy Inc., holds a 100% working interest in a Sparky oil property with 3 producing oil wells. The Flaxcombe Project includes 3D seismic coverage over the complete oil pool. Two development oil drilling locations have been identified based on the 3D technical review.
The Alsask Project is comprised of 1120 acres in the Alsask area on the Alberta/Saskatchewan border in which Ruger Energy Inc., holds a 100% working interest. The Alsask Project has 3 producing Basal Mannville oil wells and 1 water disposal well. Ruger also has 3D seismic coverage over the full 1120 acres and has identified one development oil drilling location and one exploration oil drilling location.
The Bigstone Project is comprised of lands and licenses covering a total of 5,120 acres (net 1,120 acres), in Township 60, ranges 22 and 23W5 at Bigstone, Alberta. By completing the terms of a farm in agreement with Donnybrook Energy Inc., Blackbird earned 25 per cent of Donnybrook's interest in the Bigstone lands and in any future operations within an area of mutual interest.
Blackbird's team is focused on originating new high quality oil projects through the assembly of land positions in West Central Saskatchewan and Alberta.
Blackbird Energy Inc. is a Western Canadian based company that explores, develops and produces oil and natural gas in Western Canada. The Company is managed by a proven technical team. Blackbird trades on the TSX Venture under the symbol BBI.
On behalf of the board of BLACKBIRD ENERGY INC.
Garth Braun, Chief Executive Officer and Director
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the land assembly projects. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties and speculative nature associated with oil and gas exploration and production, (3) a decreased demand for natural gas, (4) any number of events or causes which may delay or cease exploration and development of the Company's property interests, such as environmental liabilities, weather, mechanical failures, safety concerns and labour problems; (5) the risk that the Company does not execute its business plan, (6) inability to retain key employees, (7) inability to finance operations and growth, and (8) other factors beyond the Company's control. These forward-looking statements are made as of the date of this news release and, except as required by law, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements.
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